With recent developments supporting the summer export demand outlook, natural gas futures were headed for a third straight daily gain through midday trading Monday.
Here’s the latest:
- June Nymex futures at $2.206/MMBtu, up 6.4 cents, as of 2:17 p.m. ET
Nymex natural gas speculators increased their collective net short position during the week ended April 30, according to an analysis of Commodities Futures Trading Commission (CFTC) data conducted by StoneX Financial Inc.’s Thomas Saal, senior vice president of energy. Speculators were net short by 150,579 contracts, versus a prior low net short position of 145,703 contracts, according to Saal. The positioning as of the April 30 CFTC snapshot predates the Nymex futures rally that began late last week.
- LNG flows at 12.44 million Dth/d Monday as Freeport volumes showing strength, according to NGI’s LNG Export Tracker
Deliveries to the Freeport liquefied natural gas terminal were totaling 1.3 million Dth/d Monday, representing sizable incremental demand versus near-zero flows earlier this spring. Recent comments from Cheniere Energy Inc. management on the exporter’s maintenance plans this summer have also bolstered the LNG demand outlook.
“On the back of Cheniere’s earnings call Friday where its CEO expressed expectations of lighter summer maintenance relative to past years, Freeport flows rose over the weekend on the restart of its Train 2,” Gelber & Associates analysts said Monday.
- Cash prices rallying ahead of midweek heat
- Henry Hub up 19.0 cents to $1.895, according to NGI’s MidDay Price Alert
Toasty temperatures are on tap for Texas this week, Maxar meteorologist Brad Harvey said during a discussion on Enelyst Monday.
“A brief round of heat is expected in Texas on Tuesday and Wednesday, with highs forecast to peak into the low 90s in Dallas, Houston and San Antonio,” Harvey said.
Meanwhile, areas in the Southeast could see highs reach into the low 90s this week, according to the forecaster.
“Brief heat is also forecast for the Mid-Atlantic, with Washington, DC, and Philadelphia forecast to peak into the upper 80s on Wednesday” and possibly reach 90 degrees, Harvey added.
- Transco Zone 5 surging 73.0 cents higher to $2.680, per MidDay Price Alert
Transco (aka Transcontinental Gas Pipe Line Co.) began maintenance at its Compressor Station 60 Monday that’s expected to restrict south-to-north flows on the pipeline, according to Wood Mackenzie analyst Kevin Ong.
Wood Mackenzie flow data showed 774,238 MMBtu scheduled through Compressor Station 60 in Louisiana for Monday’s gas day, down from 1,367,170 MMBtu a day earlier. According to Transco’s electronic bulletin board, the planned maintenance is scheduled to run through Sunday.
